Thailand’s new cabinet must go beyond short-term economic fixes and focus on long-term structural reforms to truly revitalise the economy, according to Dr Somkiat Tangkitvanich, president of the Thailand Development Research Institute (TDRI).
He warns that while quick stimulus measures might win public support, tackling deeper issues is crucial for the country’s future and will earn the government lasting credit.
One immediate and cost-effective task, he argues, is regulatory reform. Citing TDRI research, Dr Somkiat highlighted that liberalising key sectors, such as the electricity market, could create a huge economic multiplier effect.
Dr Somkiat proposed the creation of three new sub-committees, structured like a long-term version of the Joint Public and Private Sector Consultative Committee (JPPCC), to enhance Thailand’s competitiveness:
Human Resources: A joint public-private effort to upskill the workforce and meet the private sector’s demand for high-skilled labour. He noted that a lack of skilled workers is a major barrier to foreign investment.
Innovation: A new focus on innovation to help Thailand compete against lower-cost goods, such as those from China.
Regulation: A dedicated committee to streamline and remove bureaucratic red tape that hinders business.